The ongoing trade war between the United States (US) and China has impacted Taiwanese Pegatron Corp., to moving one of it’s unit factories to Indonesia. Ist subsidiary, Chinese’ iPhone and smart-phones assembler plans to open a factory in Batam, Riau Province, starting next year, as quoted by Nikkei. The company will only move its non-iPhone products assembling division to the Indonesian factory.

Pegatron highlighted the decision was taken under pressured from trade tensions, labour wage increases, and labour shortages. Even though US and China is now under a trade ceasefire agreement, the company will not change its decision to move the assembling plant.

Commenting on the planned, Coordinating Minister for Maritime Luhut Binsar Pandjaitan stated, Pegatron’s investment plan is still being discussed. According to him, Pegatron has some concerns over licenses.